Sages and Legends in Iceland are full of trolls, elves, outlaws, spirits, afturgangas (zombies), bloodthirsty women, viking kings and gods and heroes from the North-German Mythos.

Especially elves are treated with great respect. Roads are diverted specifically around famous elven hills. For example the road between the Kópavogur sporting facility and church is called Álfshólsvegur (Elfhillroad). In Grundarfjördur between the houses numbered 82 and 86, there is a standalone elf rock. So the hidden people live at Grundargata 84! (source)